Hello everyone,
Now, I know many of you are on tenterhooks about earnings this week in the tech sector and how the Fed statement will influence the market and of course, we can’t forget the jobs report.
So, to calm any nerves about the market, I want to suggest you invest in a hedge, which will act like insurance on technology shares you own. In other words, if we have a disappointing tech earnings landscape and the market fizzles out, you will be protected.
The stock I am suggesting you purchase is the SQQQ. It’s a 3X inverse ETF of the daily performance of the Nasdaq 100 Index. So, this ETF rallies when the Nasdaq falls. This will be a short-term hold just in case the Nasdaq falls this week. Please note that if the Nasdaq continues to rally this stock will go against you. It’s about buying umbrellas while it’s relatively sunny.
It’s up to you whether you purchase insurance and how many shares you buy.
Cheers,
Jacquie
Daily SQQQ chart
Weekly SQQQ chart